ohio bwc kaizen event
TRANSCRIPT
Department of Administrative
Services
Employee Development Fund
Process
Kaizen Event: January 10-13, 2011
Report Out: January 27, 2011
1
“Take One, Make One”
2
Take One
Make One
3
Team Members
Diane Luff, Manager
Donna Diggs, EDF Program Assistant
Lena Mullins, EDF Program Assistant
Marla Everhart, FOP Representative, Commerce
Ashley Hughes, DAS, Labor Counsel, Collective Bargaining.
Sonja Hunter, Education
Dominic Marsano, SCOPE Representative, DRC
David Sapper, Job and Family Services
Bob Stinson, SEIU/1199 Representative, Mental Health
Facilitators:
Bill Demidovich, Gloria Calcara, Anita Jennings & Steve Wall
General Overview EDF
The Employee Development Funds program is designed to provide
reimbursement funding for professional development opportunities for state
employees.
Two Components:
– Exempts: The Exempt Professional Development Program (EPDP).
– Bargaining Units: Include FOP, SEIU, OSTA, and SCOPE (added in February
of 2010).
Other Facts:
– Additional diverse program policies and funding limits
– Disbursement of funds is contingent upon the availability of funds.
– Increasing volume with no additional staffing or support.
– Assists in recruitment and retention of state employees.
Event Scope
Scope:
The process begins when an application from a state employee is submitted to EDF and ends when the application is denied or when a reimbursement package is sent to OBM.
Overarching Theme:
The purpose of the event is to improve customer satisfaction and reduce processing time.
Out of Scope
Some areas that will not change as a result of the Kaizen event are the following:
– State statutory and rule items such as time requirements and
items required for application including Office of Budget & Management rules and procedures
– Bargaining unit contracts
– No additional money or staff
– No employee loses a job because of Kaizen event, but duties
may be modified
– No IT solutions until after process is streamlined
Process Challenges
• Five different customer groups each with their own policies, fund
limits and expectations
• Increased volume
• New fiscal processes from OBM, OSS, DAS Financial
• Ineffective communication between unit and customers
• Multiple forms
• Customer issues: Incomplete forms, Missed timelines by
customers
Goals & Objectives
Improve customer satisfaction by at least 50%
Decrease lead time from 4 – 6 weeks to 2 weeks (50%)
Eliminate Backlog
Eliminate Overtime
Data Analysis
Historical Program Overview
191343
668
11701399 1490
21661949 1903
2349
1686
0
500
1000
1500
2000
2500
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011
Total Number of Reimbursements ProcessedExempt and Union
Total # Reimbursements Linear (Total # Reimbursements)
In the 10 year period from FY 2001 to FY 2010, the number of employees participating in the
education and training reimbursement programs has grown exponentially , from 191 in 2001 to
2,349 in 2010 – a 1230% increase.
Processing Time
Staff have the most activity during the week responding to e-mails which can include e-mails sent
while processing applications. Processing applications is the next most common activity, then
reimbursement processing.
0
100
200
300
400
500
600
Weekly Processing Activity August -December 2010
Total Apps Proc Total Reimburse Proc Total Emails Total Phone Calls
Time Study Results
Mean: 195.41 secsor 3.25 minutes
12
212
412
612
812
1012
Ru
n C
hart
: T
ime S
pen
t (i
n s
eco
nd
s)
Run Chart: Actual Time Spent for each Activity
The time study was conducted on 2 separate days with the EDF staff. Time was recorded
for each activity that they worked on. The run chart illustrates the time spent on each of the
94 activities observed.
Work Hours
0
20
40
60
80
100
120
0
200
400
600
800
1000
1200
Tota
l Ho
urs
Wo
rke
d
Tota
l Act
ivit
ies
Pro
cess
ed
Comparison of Total Hours Worked and Number of Activities Processed
Total Activities Total Hours Worked
Overtime started
80 hour work week
This chart looks at the relationship between the number of activities performed per week and the
amount of hours worked per week. Once overtime started, the hours worked and activities
processed tracked nicely. In other words, as hours worked increased, total activities increased.
Reimbursement Processing
0
50
100
150
200
250
300
350
400
450
Comparison of Reimbursements Outstanding vs Processed
Total Reimburse Proc TOTAL Reimb Outstanding
The reimbursements processed during the week are only a fraction of the total number of
outstanding reimbursements.
Time Spent by Activity
33%
64%
92%97%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1000
2000
3000
4000
5000
6000
7000Ti
me
Sp
en
t (i
n s
eco
nd
s)
Time StudyTotal Time Spent on Each Type of Activity
Reimbursements Applications Other Activities Phone E-mail
This chart displays the total time spent on each type of activity that was observed during the
time study.
Weekly Processing & Pending
Assumptions
(pre-Kaizen event)
Application processing is kept up-to-date
with no (or minimal) backlog.
E-mails are processed daily with little or no
backlog.
Reimbursements are processed in
batches. On average, there are 233
reimbursements pending at the end of any
given week.
Measures of Success
Measure Current Level Target Gap
Improve customer satisfaction 50% 56% At least 80% 24%
Decrease lead time from 4 -6 weeks to
2 weeks
4-6 weeks 2 weeks 2+ weeks
Eliminate overtime 14 hours 0 hours 14 hours
Eliminate backlog 270
Reimbursements
Cases = 6 Weeks
Operate with
no cases
older than
24-48 hours
5 1/2
Weeks
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At the end of the week, each Kaizen team
has achieved dramatic operational improvements
Our Approach to the Week
Team-based energy and creativity drives immediate process improvement
Day of Training
Day of Discovery
& Brainstorming improvement
ideas
Day of Improvement
& Commitment of the New Process!
Day of Design
Implementation &
Documentation
Day of Celebration
&
Results
&
Schedule 30/60/90
Day Follow- Up
Kaizen Breakthrough Experience
Day 5 Day 3 Day 4 Day 2 Day 1
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Key Principles
Clear objectives
Team process
Tight focus on time (one
week)
Quick and simple, action first
Necessary resources
available right away
Immediate results (new
process functioning by end of
week)
Existing Process for
Applications &
Reimbursements
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21
Opportunities for Improvement
Brainstorming Ideas
EDF Go paperless
One form
Step up e-mail auto reply for receipt of
materials
Make e-mail submission available to BU
Create an application checklist (job aid)
Give examples of what shows proof of course
cost
Simplify app-only things necessary to pre-
approve
Require direct deposit
Online submission w/auto kick-back if missing
field ??
E-mail notification when packet sent to OBM
Establish annual review team to meet to talk
about issues (made up of union, exempt, EDF,
OBM/OSS)
Reps/advocates (HR) in each agency re: policy
changes, marketing, etc.
Eliminate signature by mgr on BUs forms
Re-establish the EDF advisory board
Ad hoc advisory board
Labor Mgmnt meetings with all unions
Include national board certification (funding for)
Move checklist to beginning of process
Bullet point instructions (checklist simplified)
With Pam’s help, revisit how it has helped
Set aside errors so flow isn’t broken
Lena & Donna pick 2 or 3 human errors that
are made and coach and support each other
Invite Gloria back every 6 months to do the
numbers. She could teach staff to run the
numbers
Electronic contact with employees
Develop template responses for most common
errors
Staff keep log of problem patterns and evaluate
at the end of week
Send evals to employees once packet sent to
OSS
Communicate to employees in the beginning
how process will go (timeframe)
65 TOTAL IDEAS FROM
BRAINSTORMING !!!!!
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Impact/Difficulty Matrix
Difficulty
Imp
act
Clean Sheet Redesign – Round 1
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Ginko Model
Banyan Model
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Common Themes
One application
No batching
Electronic submission & auto-reply
Going paperless
One database
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New Design
The “Before and After”
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Before
After
Major Process Improvements
Take one, Make one
No batching
Single application form
Paperless processing
Standardized naming convention
No backlog
No overtime
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Kaizen Results
Measure Current
Level
Target Gap Projected
Results
Customer Satisfaction 56% At least
80%
24% At Least
80%
Lead Time: Decrease from 4 -6
weeks to 2 weeks (50%)
A=Applications
R=Reimbursements
Days =Business Days
A= 1-2 Days
+ R= 23-24
Days
Total = 24-26
50% A=1 Day
R = 12
Days
A=1/2 -1
Day + R =
2-3 Days
Total 2.5- 4
Backlog 270 cases on
1-10-11
Cases no
older than
24-48 hours
Cases -
weeks
old
Processed
within 24-48
hours
Overtime 14 hours 0 hours 14 hours 0
Tasks (Steps) 40 50% 20 17 or 58%
Handoffs 14 50% 7 7 or 50%
Decisions 10 50% 5 3 or 70%
Implementation
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Action Registers
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Action Register: POLICY
What When Who
Review for Duplication and Errors
1/13/11
FOP: Marla OEA/SCOPE: Dominic SEIU: Bob EPDP: EDF staff
Create First Drafts 1/20/11 Diane
Review First Drafts DAS Legal OCB FOP OEA/SCOPE SEIU/1199 EPDP
???? ????
Approve Final Policies ???? ????
Action Registers
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Action Register: PAPERLESS
What When Who
Discuss e-implementation principles with implementation at APC
2-9-11 (for MH) Bob for 1199 Ashley for mgt
Post new form online with “Submit” button 1/14/11 Diane
Identify e-mail by Subject line Type Union status
??? IT
Set up auto reply message & confirm no infinite loops (e-mail/template vs macro)
1/13/11 Anyone who knows how
Set up shared folders with “save as” policy 1/13/11 Diane, Donna, Lena, Pam
Post on internet pages 1/14/11 Agency HR/IT departments
Order Adobe Professional for AAs ASAP Diane with purchase approval
Action Registers
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Action Register-CLEAN SHEET REDESIGN
What When Who
Set up auto-response for e-mails 1/14/11 or next week
EDF e-mail administrator
Make electronic (use scanner, shared folders, standard naming convention for folders)
Week of 1/21/11 Lena & Donna
Create e-checklist 1/14/11 or next week
EDF staff
Columns added to database (Invoice#, checklist of things employee provided)
2/14/11 or sooner IT or whoever owns the database
Create template for common responses for approvals/denials (pre-approval and reimbursement)
1/14/11 or next week
EDF staff
Create/tweak customer service evaluation 2/14/11 or sooner EDF staff and Lisa Springer
Action Registers
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Action register: APPLICATION FORM AND CHECKLIST
What When Who
Pre-approval Letter
1a Review for content relevant to new process
1/14/11 Donna & Susan
1b Redesign with more white space and for readability. Highlight “Reimbursement Documents Needed” Seminar Tuition Proof of Pymt Invoice showing Proof of attend charges, etc Flier or description
1/18/11 Donna & Susan
Application
2a Clarify w/ Bob Stinson (and others) “tech fee” & “other assistance” questions
1/18/11 Susan/Trace Hull
2b Merge draft of B/U forms with exempt for to make it 1 form
1/18/11 Susan/Trace Hull
2C Design 1 form (Decide which program (eg WORD) is best for this form)
1/18/11 Susan/Trace Hull
2D If FOP box is checked, is there a way to make course relatedness and mgmt signature fields writeable? If FOP box is not checked, other B/Us & exempt won’t be able to write in for them. Consider some technology for different fields needed in Tuition vs Seminar requests. Exempt may also need certain fields writeable.
1/18/11 Susan with input from Donna & Lena
2e Link approval letter so that when application is received, the letter is automatically sent (as currently happens w/ exempt application)
1/21/11 Susan
Action Registers
(continued)
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Website
3a Ensure updates to tuition/workshop reimbursement section of DAS website is complete
???? Susan
Database/Checklist
4a Determine if process requires a checklist (probably not) since the database serves the purpose of a checklist
1/31/11 Donna & Lena with support from Shawn Shellstead
4b If checklist is not needed, determine what fields need to be added to the database (if any)
1/31/11 Donna & Lena with support from Shawn Shellstead
4c If new fields need to be added, work with Shawn Shellstead or designee to modify ACCESS database
1/31/11 Donna & Lena with support from Shawn Shellstead
Action register: APPLICATION FORM AND CHECKLIST
What When Who
Communication Plan
Update website
– Provide clear information on how to complete the forms and what is required for reimbursement documentation
ENCOURAGE ELECTRONIC SUBMISSION
– Open up communications with:
HR
Agency newsletters
Union
Labor Management Meetings
– Meet individually with each union
– Clarify issues and information
Contacts
– Agency
HR
Training officers
– Union reps
Invite respective agencies to the Report Out
E-mail notifications to customers
– Application received
– Application pre-approved
– Reimbursement documents received
– Packet sent to OSS/OBM for approval
Internal Communications
– Communications Plan approval – Lisa, Deputy Director, Director
– Meet with unions & Legal re: new language
– Database fixes: IT
– Language written on forms: Communications
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What Changes Tuesday
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NEW PROCESS FLOW
The Latest from “WEDF” Radio
Paperless
Backlog update
Overtime
Statistics
Application form
Job aid
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4
FORMS
TO
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EDF application job aids - Draft
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Personal Lessons Learned
Lena & Donna ROCK!!! Significant improvement is really possible
Amazing collaboration
Tight, intense process
You really can break things for the better
EDF staff can see the light at the end of the tunnel
Change is possible
The only expense was “time”- no consultant fees
This is just a little example of the changes that can be made in other agencies
Achieved clarity in the difference between EDF and agency reimbursement funds
The Governor will be proud!!!
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Tell your story . . . What the
Kaizen Event was like…
Sonja Hunter
David Sapper
Diane Luff
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Thank You!
What Questions/Comments
do you have?